Haitong to acquire UT Capital

Haitong Securities Co said on Thursday that one of its units will acquire a US financial leasing business for $715 million in cash.

Haitong International Holdings will buy 100 percent of UT Capital Group from UT Capital Holdings, a company of TPG Capital and its affiliated entities, according to Haitong.

Haoting is China's second-largest brokerage by assets. TPG manages $55.3 billion in assets globally.

The brokerage said it seeks to diversity its revenue stream. Through the acquisition, Haitong will be able to quickly enter the financial leasing industry, which has large growth potential and synergy with existing businesses, Haitong said.

UT Capital Group's first-half net profit was 198.8 million yuan ($32.5 million) with revenue of 670.7 million yuan. Net assets were worth 2.35 billion yuan as of the end of June, according to a Haitong's stock-exchange filing.

Haitong did not specify when the acquisition will be completed in the filing.